Marketing †Luxury Watch Marketing Plan Essay

1. Exe signive Summary This report contains a marting plan come out of the closetline for a wise extravagance jibe entering the highlife fascinatees commercialize. The new harvest-time that give be launched on this market is a paper bag sumptuousness finder. Exclusive extravagance adoptes be defined as the ones sell higher up $9999. The check out for which we be drawing the marketing plan is a halcyon and platinum enchant with white diamonds. The use of innovative and ludicrous styling is become an increasingly important feature of the highlife watch market. The odd feature of the watch is the possibility of customization and in that respectfore personalization of this watch.The report is composed of quaternary divisions. To begin with, we m some other do a context synopsis to treatment the various macro and micro environmental factors that impact the relevant market dynamics such(prenominal) as market size and growth, agencying of breathing tell on s etc. Then we beat come up with the demographic and psychographics verbal description of the target market. Pocket watches offer a disparate kind of understand for consumers. Some use it for its novelty and style w here(predicate)as others find it more operative than wristwatches. A lot of people also use wristwatches and scoopful watches alternately. unheeding of ones preference, using a pouch watch at this day and age is still a very(prenominal) welcome sight. 2. main Report 3. 1. Context Analysis The marketing environment for Perkupoldies exclusive watch market represents overwhelming opportunities. It also contains more or little challenges that the firm believes it brush off tint successfully. The macro environmental factors atomic form 18 extremely encouraging. a) Economic environment The anatomy of people in the Forbess billionaire group and Merrill Lynch/Capgemini megaire group argon steadily increasing over the past decade.The number of billionaires has increased by more than 250 percentages. According to Merrill Lynch/Capgemini report the Worlds luxuriously gear Net worth(predicate) Individuals (HNWI) population has also grown to 9. 5 million with their assets rising to $37. 2 trillion. Number of Billionaires % Increase in number of billionaires Billionaires pay back net worth (in trillion dollars) % increase in Billionaires group 2012 1226 257. 56 4. 6 328. 57 2003 476 1. 4 b) Social Cultural environment smashed people be driven by views of oneself.They sp dismiss capital for acquiring of sumptuousness heartfelts and services to publicly display economic power. Sociologically, to the conspicuous consumer, such a public display of discretionary economic power is a instrument either of attaining or of fighting a apt(p) social status. i. toweringly- develop Economies ii. Emerging Economies c) Technological environment Product innovations, groundbreaking developments in mechanised and atomic watches enable extreme engineering and personalization of watches possible. Additionally, the below situation summary details the context for Perkupoldies marketing efforts.Here we take a adpressed scent at the internal and external factors that influence our marketing dodging using SWOT analysis. SWOT analysis The above SWOT analysis combines the external (opportunities and threat) and internal (strength and weakness) analysis. 3. 2. mart Analysis with Porters five Forces a) Threats for New Entrants The presence of benefit in an industry leave alone close in new firms bequeathing to take advantage of these profits. Over fourth dimension, too many a nonher(prenominal) new entrants will drive down these profits, decreasing at the similar prison term the attractiveness of the industry. The presence of various barriers to entry bunghole belittle this threat.b) bargain power of demoralizeers If the blur is very famous, successful and appealing to customers, there is no obvious difficulty fo r distri stillors to sell the intersections the marketing and communication efforts done by the brand will drive customers easily into the jewelers shops. Jewelers atomic number 18 usually not especially risk takers and if they possess no guarantee that the brand is a hit and will be easily sold, then one might have a hard sequence trying to convince them to taint ones convergences. All the power is in the pass on of the distributors with no distributors, the means to the customers is locked.What is more, distributors might be pressured by actual players to avert to distribute new brands. Therefore, as we mentioned earlier, dispersal is an important barrier to entry. c) Bargaining power of Suppliers The luxury watch industry is dominated by mechanistic technology as a result, the procurement of mechanical movements is the high end brands main concern. Qualified manpower give the sack also be an complete that should not be neglected the number of watch becomers able to p roduce some of the most intricate complications is very small.d) Threat of substitute products Counterfeit is a phenomenon that needs to be mentioned because it represents a non-negligible threat for the luxury watch industry. Secondly, in a larger sense, other luxury products can also be considered as a substitute. Now if we think about a stiff substitute, which could be fought with conventional marketing weapons, the issue is more complicated. mend in a narrower sense substitute could be confined to jeweler, in a broader sense we have to include all the luxury goods available on the market. a) Jewelry b) gamy end Pens (e. g.- Mont Blanc) c).Cars Some customers could corrupt a watch while others would rather travel to tropical and exotic countries, or buy luxury cars or furniture. Therefore, because the range of substitute products we can include is so broad and difficult to define acquirely, it is rather difficult to assess accurately how serious the threat is. e) Rivalry among Competition Concerning the large trends, the past years, declamatory groups were fighting over brands each group wanted to increase its brand portfolio by taking over independent brands. 3. 3. Pocket watch pains Background.There was a cartridge clip that no gentleman felt well-dressed without his dismission watch. Pocket watches, which originated in the fifteenth century among the upper class nobility, rack uped their peak in the mid-17th to early 20th century. At one point in time, no middle or upper class gentleman would imagine of leaving home without his pocket watch. Among the working class, pocket watches were more than a sign of status. They were, for many workers, an important work tool. Railroad workers, in particular, relied upon their pocket watches to time their duties.By the middle of the 20th century, with the advent of inexpensive wristwatches, the popularity of pocket watches began to wane. From full hunters case watches to ladies pendant watches, pocket watches argon fashioning their way back into the popular fashion scene. Their renewed popularity whitethorn have begun deep down the jejunenessful goth culture, especially the S police squadpunk section of Goth culture which regard all things Victorian and mechanical clockwork objects and items. If theres any neo day item that embodies the spirit of Victorian Steampunk culture, its the pocket watch.While the popular comeback of pocket watches may have begun with the underground steampunk movement, it has apace become a new fashion status symbol, popular with youth from the club scene to the stock market floor. Today, advances in glass mechanics and structure have created a new style of pocket watches transp arent, scratch-resistant take so owners can see the time without opening the case. Popular styles of pocket watches today include replicas of antique pocket watches as well as more contemporary styles that fit with todays mens and womens fashions. 3. 4. Description of P roduct.The watch has several state of the art features which are meant to satisfy the below mentioned needs of the customers. a) Stated needs To purchase a luxury product b) Real needs A jewelry and postscript c) Unstated needs An ever appreciating entertain d) Delight needs item-by-itemise e) Secret needs An expression of status and exclusivity The features of the watch are as mentioned below 3. 5. 1. Body eddy The timepiece will be a pulchritudinous handmake timepiece bearing the owners name. The watch may be make out of White bills, yellow gold or titanium depending on the particular propositionations provided by the customer.3. 5. 2. 1. Crystal Swiss 3. 5. 2. 2. glass over Sapphire glass with non-reflective coating 3. 5. 2. 3. Chain Titanium/Yellow prosperous/White Gold 3. 5. 2. Nature and Quality of jewels The watch will have at least 100 brilliantly cut diamonds on the correspond case. The chain will be made out of pure 22k gold with have around 200 cut di amonds. Though these particular propositionations are given over for the standard watch provided by our troupe. We will provide custom knowing watches for customers that may have more diamonds. Proof of authenticity will be provided for all the diamonds on the watch. 3. 5. 3.Hand Crafted Usually custom watches would require 4- 6months of manufacturing time depending on the availability of material. All watches will be hand crafted by highly skilled jewelry craftsmen. As each part needs to be fabricated, decorated, assembled, and tested, you can public figure that the process takes a yen time. 3. 5. 4. Features a) 26 cities world time (including Adelaide) b) Perpetual Calendar c) Radio controlled Receives standard time radio waves across the world d) Daylight saving function (automatic in radio wave receivable zones, manual in other zones) e)Alarm, 12/24 hr.time f) Magnetic resistance g) 2000m Water Resistant 3. 5. 5. Limited var. The watch will be one of its kinds since the design will be custom made by our interior designers specifically for our customers. The design will be classic and gilt-edged that reflects the unique personality of our client and create unadulterated value. 3. 5. 6. Warranty type lifetime International Warranty 3. 5. Factors Considered while buying luxury watches a) Precious Metal Construction It should go without face that a high end expensive watch should be constructed from quality materials.This means the shell possible metals and so forth, but it is also a good idea to ensure that the metals involved are inherently valuable. It also goes without saying that precious stones also are a desirable component given the style and variety of the watch. b) Nature and Quality of Jewels The first thing to savour at is the origin of the stones. The deuce major options are natural or manufactured. Natural stones are obtained the traditional manner via often controversial minelaying methods. There is an inherent romance to the co ncept that a stone was derived from the earth, discovered, cut and polished, and then used on your luxury item.Aside from recycled stones (taken from older or unsold items), the alternative to natural stones are manufactured stones. c) Hand Construction High-end watches are hand-made and assembled by master watch makers. Sometimes a team of people will be involved in making the watch, other times a single watch maker toils for as long as a year or more on a single watch. As each part needs to be fabricated, decorated, assembled, and tested, you can image that the process takes a long time. The longer it takes to make a watch, the more refinement and decoration will be found in an on it.There is no specific amount of time that you should look for as it depends on the company. d) Complications High-end watches dont just have beautiful mechanical movements, they have complex movements. Other complications effect how accurate a watch is or how interesting the movement is to look at wh ile in operation (i. e. various types of tourbillon escapements). Other common complications in high end watches are perpetual calendars, rattrapante chronographs, sonneries, fusee and chains, moon phases, and multiple time zones along with world timers.e) Style- The top hat watch makers are skilled in making unique designs, but ones that are instant classics. The shell designs will look good on anyone. Lastly, when looking at a designer look, you want to make sure it has enough unique qualities to justify the exclusive item you are thinking about buying. f) Limited Edition The best luxury things in life comes in small quantities and are made in circumscribed productions by dedicated people. Besides, having too much of anything cuts the value and the intrigue. So look for peculiar(a) edition or highly limited production watches.Ask how many of a particular model has been made and whether or not there are 1000 or 100,000 of them out there. The more limited a watch is the more e xclusive it is, which is a major component of true luxury goods. g) Appreciation of value The well- devoted high-end luxury watch buyer will be able to bear up under a timepiece that has the potential to increase in value. 3. 6. Segmenting Targeting and positioning 3. 7. 7. Segmenting Market segmentation is vital for a companys success. Without a clear idea of the nature of the target segments, the firm is forced to use a scatter?shot approach to marketing strategic last making with little chance for success. It is necessary to identify target segments of consumers and tailor gos to best meet the wants and needs of that particular group of consumers. 3. 7. 8. 4. Demographic criteria a) kindle The luxury market could also be segmented gibe to the sex criteria. thusly mens watches are quite dissimilar from womens. There are differences on the precious metals used for the fabrication, on the size of the strap and of the dial. b) Income directNaturally the income is a very impo rtant factor of the luxury market, because it determines the buying power of consumers which has to be very high. c) Geographic banner The luxury watches market could also be segmented according to geographic regions. People from different regions do not share the same culture of the purchasing power. 3. 7. 8. 5. Psychographic criterion Psychographic bass for segmentation center on perceptual issues. These segments are determine by combining individuals who are psychologically similar in their orientations.These distinctions are made based upon similarity of lifestyles, personalities and value. a) Lifestyle it reflects the ways in which the individual chooses to live their lives. What types of activities they enjoy, what life settings they desire, and who they surround themselves with are all components of lifestyle. b) Personality here the idea is to group people into roughly similar personality types with the fundamental assumption that people will be more favorably disposed toward those of a similar personality profile.c) Core values to try to add its core values with those of its customer segments building positive associations. The company stresses values in its products/services as well as in its incorporate environment and culture, and the hope is that the segment will become loyal to the company because it embodies the core values of importance to the consumer. People have different reasons to buy luxury watches. Five motivations can be listed * To be fashionable * To have a customized and unique product * To have an excellent and reliable product.* To have a product with the posthumousst technology * To have a high standard of living 3. 7. 8. 6. Segmenting on the basis of Demography a) Income group HNWI, UHNWI, Billionaires b) Sex Male, female 3. 7. 8. Targeting Targeting requires the firm not only to aim at but hopefully to hit its target segments. The final important aspect involves the substantiation of an important perceptual position in the mind of the consumer. It involves the decision of the number of different segments to select and dish and the best action plans to reach the set segments.Measuring Effectiveness of Target Segments a) Measurable size of segment, income and purchasing power, and characteristics of the segment b) Accessible reachable by the firm and able to effectively serve the segment c) Substantial large enough and capable of generating sufficient profits d) Differentiable truly distinct from other segments in terms of radical and response to marketing stimuli e) Actionable marketing programs can be developed to effectively identify, attract and serve the segment Purchasing manner of Customers.a) flesh of purchase Most of the luxury watches are bought either by a person for themselves or for another person (as gift). The unit price of a luxury watch would deter much of the gift buying behavior except by the seriously wealthy or on a very special occasion. One typical example is birt hday or wedding anniversaries that, in the latter case, help to promote sales from the late spring onwards. b) Decision Making In this market, the Influencer is the person who hopes to receive a watch as a gift. For example, it could be a woman who incites her save to buy one for a special event.The consumer is the one who uses the product. In our example, it would be the woman who asks her husband to buy one for her (the consumer is often the influencer). c) Duration of decisionmaking process We can distinguish people who do not consider high price to be a deterrent and who make an impulsive purchase and others who think about spending such money in a luxury watch for a long time. d) duration of buying process There is a minority of people who are interest in such product. But those who are really interested have already taken the price into consideration and thus would buy our product relatively easily.e) Consumption process Due to their high prices, luxury watches are an invest ment for a lot of people and that is why it is in average bought once in ones life. Analysis of take up a) Potential market millionaires and billionaires b) Available market HNWI (High net worth individuals) UHNWI (ultra High net worth individuals) and billionaires. c) Target market UHNWI (ultra High net worth individuals) and billionaires Based on the above mentioned Segmentation, purchasing behavior and analysis of beg the firm Perkupoldies would be targeting UHNWI and Billionaires.3. 7. 9. Positioning The last crucial step is placing of the product or service in a particular perceptual position within the mind of the consumer. The idea here is that there is a specific consumer segment in mind and a specific plan to reach it, and now the idea is to ensure that the target consumer has a clear and typical image in mind regarding the product offerings being aimed at them that is self-consistent and positive. a) Customer knowledge b) Ultimate social symbol c) Brand logo crown d) Innovations in product line.e) Powerful brand ambassadors f) Sport and ethnic events g) Philanthropic programs 3. 7. Distribution Distribution have a bun in the oven is key to the sales of sumptuousness products like Perkupoldies luxury watch. The central dilemma while choosing the distribution channel is generating sales in a dynamic market while maintain brand image and price. The steps to be followed while choosing a distribution channel are as follows Step (a) Analyzing customers desired service takings levels For under stand up consumer needs the following 5 service outputs need to be viewed.(a) Lot size usually one to two watch depending on whether its a single watch order or a geminate watch order. (b) Waiting and auction pitch time The basic product must(prenominal) have a very waiting and delivery time of less than 15 days for global delivery. The personalized versions will have a waiting and delivery time constraint of less than 45 days. (c) spatial convenienc e As a high end luxury product, it will be required to be available at key luxury electric receptacles. (d) Product Variety the assortment breadth of the marketing channel is very large as the product is highly customized.(e) Service backup append services like credit, delivery, repairs and a high quality of service will be required by the distribution channel. Step (b) Establishing bearings and constraints The primary objective of the distribution channel is to provide easy availability at specific high end luxury retail outlets combined with the online purchase options for a highly customized product. Step (c) Identifying and evaluating major channel alternatives There are 3 major channel alternatives namely wholesale, luxury retail and online.There are three distribution channels options available for Perkupoldies luxury watch as mentioned below a) Wholesale These are sales through with(predicate) third parties. They may include various stores, boutiques etc. While this option offers growth for the product market there are several challenges associated with this distribution channel. b) sell These distribution channels are managed in-house. The sales are usually done through company owned or franchised branded stores. Company owned or franchised stores allow will allow Perkupoldies to have a better control over the pricing.For luxury products Luxury sell presents tremendous opportunities. Luxury Retail includes distribution channels like travel location and High-end hotels. c) Online Sales and legal proceeding are completed online. This distribution channel can operate as both retail and wholesale. Traditionally websites are operated by established retailers such as department stores and e-boutiques. There is an increasing trend towards luxury outlet e-stores, m-commerce, iPad applications, Social networking etc.Step (d) Evaluating major alternatives Based on the above analysis of distribution channel options and weighing their pros and cons it can be seen that the best option of distribution channel for perkupoldies is as mentioned below (a) Luxury Retail outlets in high end hotels and travel location (b) An online channel for customizing the product and ordering it. (1) Customize the Hands of the watch (2) Customize the Body of the watch (3) Customize the Body of the watch (4) Personalize the watch e. g. engravings and pictures on the watch Shown above online screens to enable customization of the Perkupoldies pocket watch.3. 8. Brand What Rolls-Royce is to car, Perkupoldies is to pocket watch Here are five steps to build a luxury brand (a) Identifying a niche segment One of the fundamental principles of effective branding is for brands to diligently select a lucrative segment that they can then target through an enticing positioning. Given the focus on highlighting exemplary value either through an overall brand experience or via exclusivity in offerings, price points or availability, luxury brands have a heighten ed need to identify the niche segment for which they have designed their offering.(b) Positioning based on high levels of differentiation Since all luxury brands follow a differentiation strategy, the main focus should be to precipitously differentiate the brand experience. Successful product differentiation creates a competitive advantage for the seller, as customers view these products as unique or superior. (c) Emphasizing symbolic value Symbolic value emanates from the social standing of the brand, that is, the extent to which the brand is perceived as being an elite offering aspired to by customers.As such, symbolic value reflects the extent to which the brand is endorsed and pass by the cream of the customers. (d) Creating perceptions of exclusivity Perceptions of exclusivity can be created by unattainable price, limited geographic availability, barriers to possession, or even limited supply. Clearly, it is the identity, which the brand confers upon the owner. (e) Uncompromi sing delivery on superior brand promise Not only do luxury brands need to consistently deliver on the promise of symbolic value, but they also will need to project consistency and persistency at every possible touch point.Maintaining focus on superior value and unique brand experience across time and length is an important part of uncompromising delivery of brand promise. 3. 9. Advertising strike advertising appeals to luxury target groups Luxury brands have to cultivate their image continuously and an important aspect of this is the choice of appropriate advertising media. Although, the two luxury-oriented target groups see advertising as being more plausible than the population as a whole, there are significant differences surrounded by the individual media, parallel to the degree of receptiveness.For both luxury and for premium-watch buyers, magazine advertisements are the most persuasive with 40 percent of this target group according advertisements the highest level of cred ibility. Poster campaigns are also rated positively. Less well accredited is advertising in the electronic media, on television and, above all, in e-mails and on the internet. Premium-watch buyers are also characterized bya very great affinity to luxury. However, they are significantly less interested in fashion than luxurybuyers precision timepieces are their passion.Premium-watch buyers are interested in watches for watches sake and not as part of their outfit. 3. Conclusion This marketing plan explains how an attractive combination of 4Ps can be offered by Perkupoldies to promote and sell the pocket watch. There is an animated market for this product. The ease of entry is very low as its primarily an online business with a few high end luxury retail outlets. The company is offering a value proposition by offering a high value item which has an everlasting value. 4. References.